The Resource Curse and Democracy

In a paper Leonard Wantchekon & Nathan Jensen

...present empirical evidence suggesting a robust and negative correlation between the presence of a sizeable natural resource sector and the level of democracy in Africa. We argue that not only is resource abundance is an important determinant of democratic transition, but also partially determines the success of democratic consolidation in Africa. The results illuminate the fact that post-cold war democratic reforms have been successful only in resource poor countries such as Benin, Mali, and Madagascar. We argue that resource-rich countries such as Nigeria and Gabon can become democratic only if they introduce strong mechanisms of vertical and horizontal accountability within the state.